China auto market shows no signs of slowdown image

New-car sales in China showed a further increase in the first half of the year on the back of a high demand for SUVs.

Chinese car buyers’ attraction towards SUVs have been constantly increasing in recent years and the segment has pushed the world’s biggest auto market to a further expansion. Sales of new passenger-vehicle rose 9.5 percent to 10.8 million units in the first six months of the year, Bloomberg reports, citing data provided by China Passenger Car Association. SUVs accounted for 35 percent of total deliveries in the first half, up from 27 percent in the same period a year earlier. June proven to be a particularly strong month, as sales jumped 19 percent to 1.7 million units. The market’s pace started to show a really solid push following government’s decision to cut the purchase tax for engines smaller than 1.6-litre as of October last year. Furthermore, the upward trend is said to keep going after the authorities announced plans to abolish the one-child policy, allowing all families to have two children, a decision that would definitely spur the demand for SUVs and MPVs.

The environmentally friendly cars have also been on a rise, with sales surging 126 percent to 86,374 units in the five months through May, the most recent month for which the Car Association provided data. China, which became the largest market for electric vehicles last year, set a goal of “forcing” the new-energy-vehicle segment to exceed 3 million units of annual sales a year by 2025.

Bloomberg